Sarasota, Florida (PRWEB) November 6, 2006 –-
Uranium miners should be pleased the spot price stayed above $60/pound again this week. According to TradeTech Chief Executive Gene Clark, whose consulting service surveys buyers and sellers, the $60/pound level may just be a breather before the spot price heads higher in the weeks to come.
TradeTech Chief Executive Gene Clark told StockInterview.com, "One off-market transaction involving delivery before year-end was concluded this week at, or very near to, TradeTech's Spot Price Indicator of $60.25 per pound U3O8." The term U3O8 refers to uranium oxide, which is the processed uranium before conversion and enrichment for use in powering nuclear reactors.
After a record percentage jump of seven percent the previous week, TradeTech's Uranium spot indicator sustained its increase above US$60/pound. According to the head of the consulting service, which is the first to report changes in the spot price, "small quantities of uranium" were offered at the current price.
The spot uranium price has been moving higher through 2006. It has doubled in the past 14 months. "While most sellers adopted a 'wait and see' attitude, a few decided to capitalize on the recent price run-up," Clark said. "These decisions were prompted by end of year cash needs."
Clark explained why there were offers being made available by sellers, "When it gets close to closing the fiscal year, and some sellers see an opportunity to book a sale accompanied with payment before the year ends, offer prices often reflect that hunger for cash."
Clark expects market fundamentals to support further price increases. Uranium pricing strengthened after a Cameco Corp's advanced uranium project was flooded on October 23rd. Known as Cigar Lake, the uranium mine was anticipated to calm an excited uranium market by providing as many as 18 million pounds of nuclear fuel to global utilities. Utilities were already anticipating a shortage in uranium because of increased Asian demand and the termination of the Russian HEU deal, which benefited U.S. electric utilities.
"The timing of the Cigar Lake flooding, coincident with the need of some sellers to generate cash at year-end, means buyers have a brief window of opportunity to obtain uranium at prices that will likely be considered a bargain in the not-too-distant future," Clark concluded.
TradeTech and its predecessor NUEXCO have been publishing uranium market prices since the inception of the commercial nuclear fuel market in 1968. The current weekly spot uranium price appears at: http://www.uranium.info
The exclusive featured interview with TradeTech's Gene Clark appears on the online financial news website, StockInterview.com: http://www.stockinterview.com/News/11052006/Uranium-Spot-Price.html
StockInterview.com is a financial news service covering developments in the nuclear fuel industry. StockInterview's publication, "Investing in the Great Uranium Bull Market," has been praised as must-reading, and was endorsed by the preeminent scientist and environmentalist, James Lovelock. Gene Clark was a contributing editor to this publication. More Info: http://bookstore.stockinterview.com
Contact:
Julie Ickes, StockInterview.com
Tel: 1+941-929-1640
OR
Gene Clark, TradeTech
Tel: 1+919-933-7388
(Source: StockInterview.com)
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